January 19, 2018 / 5:56 AM / in a year

Bangkok Bank FY profit rises on higher fee income

BANGKOK, Jan 19 (Reuters) - Bangkok Bank PCL, Thailand’s largest lender by assets, posted a 3.8 percent rise in annual profit, beating analysts’ estimates, buoyed by higher fee and service income, but its shares dropped on Friday tracking a broader banking sector downturn.

Bangkok Bank said late Thursday its profit rose to 33 billion baht ($1.04 billion) in 2017, from 31.8 billion baht in the previous year.

The company beat an average estimate of 32 billion baht in a Thomson Reuters poll of 23 analysts.

While the Thai economy has expanded, “diverging monetary policies of the world’s major central banks and the political environment in important trading partners may result in an environment of global financial and trade uncertainty,” it said.

Shares in Bangkok Bank fell as much as 2.3 percent in the morning trade on Friday, and analysts said weak earnings and missed expectations from its peers sourced investor sentiment on the local banking stocks.

Shares of Siam Commercial Bank PCL, the country’s second-largest bank by assets, slipped nearly 3.6 percent on Friday. The company posted a 9.4 percent drop in annual profit to 43.1 billion baht from 2016, and missed expectations, on higher provisions and expense.

Kasikornbank PCL, reported a net profit of 34.3 billion baht on Friday, a decline of 14.5 percent compared with the previous year, and missed expectations by 3 billion baht. The company’s shares dropped as much as 4 percent on Friday.

The Southeast Asian country’s banking sector index was down 2 percent, while the broader stock market was down 0.5 percent. (Reporting by Chayut Setboonsarng; Editing by Sherry Jacob-Phillips)

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